Company Name vs Your Own Name: Registering a New Car in Mumbai, Maharashtra (Road Tax, GST Credit, Resale)
By Arjun Ramanarayanan, IndiCar · Published 23 October 2026 · Tips
Company registration in Maharashtra carries a 20% road tax against 11% to 15% for individuals, and GST input credit on an ordinary company car stays blocked under Section 17(5).
In Maharashtra, registering a new car in a company's name generally costs you more road tax than registering it in your own name. Most sources put the company rate at 20%, against 11% to 15% for an individual. It also does not, by itself, let the company claim GST input tax credit on an ordinary passenger car. The tax benefit the facts do support is income tax depreciation for business use, and you should weigh that against the higher road tax.
How much road tax does a company-registered car pay in Maharashtra?
The headline figure is 20%. One source says company registration carries a 20% road tax, or 16% on CNG cars under Rs 20 lakh. Another says company-registered and imported vehicles pay a flat 20% regardless of fuel type or price.
The sources do not fully agree on CNG and on how the rate is worked out. A road safety cess of 2% of the road tax applies on top, whichever rate you pay.
| Source | What it says about company (non-individual) registration |
|---|---|
| Car Registration Charges in 2026 | 20% road tax, or 16% on CNG cars under Rs 20 lakh |
| RTO Road Tax on car by State in India 2026 | Flat 20% regardless of fuel type or price |
| Road Tax Maharashtra | Petrol 20% in all three price bands. CNG/LPG: 14% up to Rs 10 lakh, 16% for Rs 10 lakh to Rs 20 lakh, 18% above Rs 20 lakh |
| Maharashtra Road Tax Calculator 2026 | 1.25 times the individual rates |
For a CNG car in a company's name, the exact rate depends on which reading the RTO applies. IndiCar shows the road tax line for company registration in its itemised breakup before you book.
What road tax does an individual pay in Maharashtra?
An individual pays 11% to 15%, depending on fuel and price. Petrol is taxed 2 percentage points lower than diesel in each band.
| Price band | Petrol (individual) | Diesel (individual) |
|---|---|---|
| Below Rs 10 lakh | 11% | 13% |
| Rs 10 lakh to Rs 20 lakh | 12% | 14% |
| Rs 20 lakh and above | 13% | 15% |
As an example from one source, a petrol car at Rs 9,90,000 pays Rs 1,08,900 road tax when registered to an individual. Electric cars get a 100% road tax exemption in Maharashtra, according to one source.
Can a company claim GST input tax credit on a new car?
No, not on an ordinary passenger car. Section 17(5)(a) of the CGST Act blocks input tax credit on motor vehicles for carrying people with approved seating of not more than 13, including the driver.
The credit opens up only where the vehicle is used for:
- further supply of such vehicles
- transporting passengers
- driving, flying or navigation training
A company car bought entirely for business use is still a blocked credit. Putting the car in the company's name does not change that, because eligibility still turns on Section 17(5).
The narrowness of the exceptions shows up in CBIC Circular 231/25/2024-GST. It says credit on demo vehicles held by authorised dealers is not blocked. The same circular says credit stays blocked if the dealer uses those vehicles to carry its own staff or management.
What income tax depreciation is available on a car used for business?
Motor cars used for general business travel get 15% depreciation. Vehicles used for commercial hiring get 30%.
Depreciation under Section 32 is allowed only for business or professional use, not personal use. If the car is used for fewer than 180 days in the year, it gets half the normal rate.
What changes when you sell a company-registered car?
The paperwork gets heavier. For a normal used-car ownership transfer, Forms 29 and 30 are the main RTO forms. For a vehicle registered in the same state, the buyer should generally apply within 14 days.
When the seller is a company, one guide lists the extra steps:
- board authorisation and an authorised signatory
- how Forms 29 and 30 are executed for an entity
- the GST margin-scheme position on the sale
- additional RTO documents
None of these stop a sale. Each one is a step that a private owner selling a car in their own name does not face.
Worked example: Mahindra Thar on-road price in Mumbai
The cheapest Thar on IndiCar's price list dated 12 October 2026 is the AXT RWD Diesel Manual at Rs 12,76,771 on-road (12.77 lakh), with individual registration in Mumbai. Road tax and registration make up Rs 1,48,240 of that.
| Item (AXT RWD Diesel Manual, Mumbai, individual) | Amount |
|---|---|
| Ex-showroom price | Rs 10,31,999 |
| RTO registration and road tax | Rs 1,48,240 |
| Insurance (first-year comprehensive) | Rs 85,362 |
| TCS | Rs 10,320 |
| FASTag | Rs 850 |
| On-road price | Rs 12,76,771 |
| On-road minus ex-showroom | Rs 2,44,772 |
IndiCar prices 7 Thar variant and powertrain combinations, in diesel and petrol, with manual and automatic gearboxes. The top LXT 4WD Diesel Automatic is Rs 22,01,294 on-road (22.01 lakh), ex-showroom Rs 17,99,499. That puts the full range Rs 9,24,523 apart on-road.
You can see every combination on the Mahindra Thar prices and configurator page, or work through other cars with the on-road price calculator.
Should you register the car in your name or your company's?
On these facts, your own name is the cheaper registration for most buyers. A company registration pays 20% road tax on most readings against 11% to 15% for you, adds the 2% cess on a larger base, and does not unlock GST credit on a car with 13 seats or fewer.
Company registration suits you if the car is genuinely used for business and the 15% depreciation is worth more to the company than the extra road tax. A car used for commercial hiring qualifies for 30%. Have your accountant run that comparison, because this article does not cover insurance differences, running costs or how your business is structured.
How to buy through IndiCar
Choose your car and variant on indicar.in, browsing all new cars with Mumbai on-road prices, and tell IndiCar whether the registration is in your name or your company's. Before you book, IndiCar gives you in writing the itemised on-road price for that registration type, confirmed stock and the delivery date.
You then book with a refundable reservation. IndiCar sources the car from partner dealer stock, where the authorised dealer invoices it, and handles registration, insurance and delivery in Mumbai, Navi Mumbai or Thane. You deal only with IndiCar throughout.
Sources
- Car Registration Charges in 2026. Latest RTO Road Tax
- RTO Road Tax on car by State in India 2026: Complete State-Wise Rates
- Road Tax Maharashtra
- Maharashtra Road Tax Calculator 2026
- Maharashtra Road Tax 2026: 11% to 15%
- GST: Blocked Input Tax Credit (ITC)
- GST ITC Blocked Credit: Section 17(5) Complete Guide
- GST Input Tax Credit on Car Purchase for Company: Rules and Exceptions
- CBIC Circular No. 231/25/2024-GST
- Depreciation On Car As Per Income Tax: Practical Guide
- Vehicle Depreciation Rate in India: Know Car Depreciation Rate
- RTO Forms Checklist for Buying and Selling a Used Car
- Selling a Car Registered in a Company Name: Signatures, GST and the RTO File
Buying a new car through IndiCar
IndiCar arranges new-car purchases in Mumbai, Navi Mumbai and Thane. You book a new car on IndiCar at the on-road price shown on its car page, with the full price breakup: ex-showroom, RTO registration, insurance, TCS and FASTag. You book online with a refundable reservation, and IndiCar sources the car from partner dealer stock and handles the registration, insurance, paperwork and delivery.
You deal only with IndiCar from quote to delivery. Your phone number is never passed to a dealer, and you do not need to take the quote to a showroom to negotiate. See on-road prices and book or get a WhatsApp quote on +91 85916 41004.
Frequently asked questions
What road tax does a company-registered car pay in Maharashtra?
Most sources put it at 20%. One source says CNG cars under Rs 20 lakh pay 16%, another lists CNG/LPG at 14%, 16% and 18% across the three price bands, and one calculator describes the company rate as 1.25 times the individual rate. A road safety cess of 2% of the road tax applies on top.
What road tax does an individual pay in Maharashtra?
Petrol cars pay 11% below Rs 10 lakh, 12% from Rs 10 lakh to Rs 20 lakh and 13% at Rs 20 lakh and above. Diesel cars pay 13%, 14% and 15% in the same bands.
Can my company claim GST input tax credit if the car is used only for business?
No. Section 17(5)(a) of the CGST Act blocks credit on passenger vehicles with seating of 13 or fewer including the driver, even when the car is used entirely for business. The exceptions are further supply of such vehicles, transporting passengers, and driving, flying or navigation training.
How much depreciation can be claimed on a car used for business?
Cars used for general business travel get 15% depreciation and vehicles used for commercial hiring get 30%. Depreciation is allowed only for business or professional use, and a car used for fewer than 180 days in the year gets half the normal rate.
Is it harder to sell a car registered in a company's name?
It involves more paperwork. Alongside Forms 29 and 30, a company sale needs board authorisation and an authorised signatory, entity execution of the forms, a view on the GST margin scheme and additional RTO documents.
Will IndiCar show me the road tax for company registration before I book?
Yes. IndiCar gives you the itemised on-road price for your chosen registration type in writing before you book, along with confirmed stock and the delivery date.
Tags: road tax, maharashtra, company car, gst input tax credit, car registration, mumbai